FIT21 bill passed by US House of Representatives

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As an experienced financial analyst, I believe that the initial approval of the FIT21 bill in the U.S. House of Representatives is a significant development for the cryptocurrency market. The potential regulation of digital assets could create a more stable and clear environment for trading and investment. This bill’s goals to clarify regulatory roles, improve consumer protections, and eradicate scams are crucial steps towards mainstream acceptance of digital currencies.

With a vote of 279 in favor and 136 against, the US House of Representatives endorsed bill FIT21, sending it on to the Senate for further consideration.

The preliminary acceptance of the Financial Innovation and Technology for the 21st Century Act (FIT21) could bring about substantial changes in the cryptocurrency sector, fostering optimistic attitudes among traders. This legislation marks a significant move towards regulating digital assets in the US, which may determine the direction of cryptocurrency transactions and investments in the future.

What is FIT21? 

The proposed FIT21 legislation, jointly developed by the House Agriculture Committee and the House Financial Services Committee, seeks to bring clarity to the Securities and Exchange Commission’s (SEC) classification of cryptocurrencies. This would be achieved by introducing a new term, “digital commodity,” for such assets.

The SEC’s proposed legislation targets three primary objectives: providing clarity on regulatory functions, enhancing consumer safeguards, and fostering a conducive climate for digital asset development. By eliminating fraudulent activities, controlling crypto exchanges, and shielding consumers, the bill aspires to gain broad support during the upcoming vote, boasting backing from both Democratic and Republican parties.

According to Scott Mason, senior policy advisor at Holland & Knight, FIT21 presents an excellent chance for the crypto/blockchain sector to trust that the US remains a welcoming environment. With the industry showing no signs of waning, it is essential for the US to take the reins instead of following Europe and other countries in their aggressive pursuit of investment.

The ruling

As a crypto investor following the House proceedings, I’ve noticed that the session began with Rep. Jim McGovern making some comments about a former president, which led some Republicans to ask for his words to be recorded officially. This process is called “calling for the previous question” or “taking the previous question,” and it can be invoked during debates on the House floor, in the Committee of the Whole, or in standing and select committees. In simpler terms, when a member wants to end debate on a particular issue and move on to a vote, they can request that the previous question be taken, effectively cutting off further discussion.

As a crypto investor following the latest developments in Congress, I endured an intense impasse over this topic for more than an hour. Subsequently, Representative McGovern announced via Twitter that he had been silenced from addressing the House Assembly.

Today, I was barred from addressing the House Floor by Republicans after I mentioned the ongoing trials against former President Trump. I didn’t pass judgment on his guilt or innocity; I simply stated the fact of the trials’ existence. Seemingly, it is permissible for Republicans to discuss Trump’s trials.

— Rep. Jim McGovern (@RepMcGovern) May 22, 2024

Following these occurrences, the bill advanced through the committee with a close vote of 204 to 203. During the final debates, Congressman Patrick McHenry advocated for FIT21’s passage, asserting that this legislation would solidify the US’s position as a world leader in technological innovation, invention, and adoption.

The vote concluded 279 in favor to 136 against with 71 Democrats voting in favor of the bill.

“This vote is the result of countless hours of dedication from policymakers, their teams, and the technology industry to ensure consumer safety and maintain the US as a leader in digital advancements. It demonstrates that these two objectives – innovation and protection – can harmoniously exist within the realm of digital assets. A total of 71 Democrats supported maintaining tech as a non-political matter.” – Sheila Warren, CEO of Crypto Council for Innovation, stated in a note acquired by crypto.news

What’s next?

Previously on Wednesday, the White House voiced concerns over the bill in public, pointing out the absence of a regulatory structure for digital assets as an issue. Nevertheless, the Biden administration has signaled its readiness to work with legislators to establish definitive crypto laws, and the President himself has indicated that he won’t be vetoing the legislation.

The legislative process for the FIT21 Act doesn’t conclude with a House approval. Should it get approved, the act will then move on to the U.S. Senate for more deliberation. Additionally, the House has also passed a bill prohibiting the Federal Reserve from developing a Central Bank Digital Currency (CBDC).

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2024-05-23 00:58